Well-known Digital Marketing Agency, The two companies have
confirmed IBM is getting shot of
its semiconductor unit, but it will have to pay contract chip-maker GlobalFoundries
$1.5 billion to take on the loss-making business.
According to
IBM release, although the move is significant, it doesn't spell the end of
IBM's Power Risc processor, which will be made under contract. GlobalFoundries
will become IBM's exclusive server processor semiconductor technology provider
for 22 nanometer, 14nm and 10nm semiconductors for the next 10 years.
Bloomberg says
GlobalFoundries will get the expertise of IBM's highly-respected engineers as
well as intellectual property (in other words, thousands of patents). It will
also give IBM a guaranteed supply of Power chips for mainframes and large scale
computers. GlobalFoundries is contributing $200 million of resources, which
will offset the price IBM is paying.
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